Costing

21. . . . . . . . . is the consolidated summary of the various functional budgets.

Master budget
Sales budget
Performance budget
Cash budget

Detailed Solution. . . . . . . . is the consolidated summary of the various functional budgets.

22. Which of the following is an example of semi-variable cost?

Salary
Tax
Telephone expenses
Office expenses

Detailed SolutionWhich of the following is an example of semi-variable cost?

23. Which one of the following is not considered for preparation of cost sheet?

Factory cost
Goodwill written off
Labour cost
Selling cost

Detailed SolutionWhich one of the following is not considered for preparation of cost sheet?

24. In an activity based costing implementation, product’s diverse demand is based on

batch size
complexity
process steps
All of these

Detailed SolutionIn an activity based costing implementation, product’s diverse demand is based on

25. starting point in operating budget is

cost budget
material list
revenue budget
list of investors

Detailed Solutionstarting point in operating budget is

26. Fifth step in quantitative analysis of estimating cost function is to

estimate cost function
estimate price function
estimate supply function
estimate demand function

Detailed SolutionFifth step in quantitative analysis of estimating cost function is to

27. The margin of safety is calculated by using

$$ rac{{{ ext{Profit}}}}{{ rac{{ ext{P}}}{{ ext{V}}}{ ext{ratio}}}}$$
$$ rac{{{ ext{Fixed Cost}}}}{{{ ext{Contribution}}}}$$
$$ rac{{{ ext{Break Even Sales}}}}{{{ ext{Sales}}}}$$
$$ rac{{{ ext{Profit}}}}{{{ ext{Sales}}}}$$

Detailed SolutionThe margin of safety is calculated by using

28. Portion of labour costvariance which is due to the difference between predetermined working days and actual working days is

labour idle time variance
labour calender variance
labour rate variance
labour efficiency variance

Detailed SolutionPortion of labour costvariance which is due to the difference between predetermined working days and actual working days is

29. The use of LIFO method is suitable when prices are:

Falling
Rising
Constant
In all of the above conditions

Detailed SolutionThe use of LIFO method is suitable when prices are:

30. Second step for estimation of cost function by using quantitative analysis is to

choose independent variable
choose cost estimation method
choose price estimation method
choose dependent variable

Detailed SolutionSecond step for estimation of cost function by using quantitative analysis is to

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